Behind the Seams: Tariffs, Trade Wars, and the Cost to Doing Business
Tl: dr
After 2+ years of carefully building a localized, responsible supply chain, the impact of tariffs is immediate. For a small brand like Petal + Ash, with tight margins, these added costs are existential.
Free trade agreements may reduce costs, but they’re not built with sustainability in mind—and often encourage global ping-ponging of materials.
The current system favors volume and speed, not thoughtful production—and it’s a big reason mission-driven brands struggle to survive.
We’re not giving up. We’re navigating this mess transparently—and pushing for a system that supports sustainability, not penalizes it.
I woke up to a New York Times notification on my phone: Trump’s Tariffs on Steel and Aluminum Go Into Effect, Inciting Global Retaliation. I sunk back into bed, feeling the weight of something so far beyond my control…after 2+ years of carefully building a localized, responsible supply chain, the impact of this was immediate. For a small brand like Petal + Ash, with tight margins, these added costs weren’t just inconvenient — they were existential.
The trade war had begun — and I knew we were in for a fight.
Sourcing all the Petal + Ash materials has been a painstakingly slow process. When I started, a lot of what I was looking for didn’t yet exist. Or it did exist, but was not accessible (based on minimum order quantities, which can sometimes be in the tens of thousands of meters) for a small brand looking to enter the market. Some innovative materials were priced so high that even established brands couldn’t afford them. (I took one call with a factory making bra hardware through the coolest recycled process, but the cost was so high, no brand had yet been able to factor the cost into production. This was several years ago, so that may have changed, but I’ve yet to see the product on the market).
Once we finally began to zero in on the right materials for Petal + Ash, I worked incredibly hard to create a very localized supply chain. In a globalized world, where brands ship materials back and forth, all over the world, before a finished product even arrives at your doorstep or in-store, I was beyond proud of the work done to source not only natural fibers, responsibly produced, but to do so entirely within one region: Western Europe.
After these 2+ years of sourcing and product development, followed by more recent connection building with several manufacturers—as of a few weeks ago—Petal + Ash was finally ready to move into the next phase: making production samples with potential factory partners. I was so excited to finally round this corner. Major progress!!
Meanwhile, the global landscape was swiftly shifting. Like most businesses, I had my ear to the ground, nervous of pending developments. Mexico and Canada were the first announced targets of the Trump administration tariffs, along with additional tariffs on China. The triggering of a trade war with traditional U.S. trading partners, and the back and forth of when and how these tariffs would go into effect would give anyone paying attention whiplash. And Europe was rumored to be next.
I had taken a call with a customs broker to help understand general customs duties, and he’d confirmed that the rumors of further tariffs were valid. Everyone in any business community knew the situation was precarious. And everyone was just waiting like sitting ducks, to see what would happen next. Despite this, he urged me to continue moving forward with my planned supply chain, and to assess as things came to fruition.
Then I woke up to the news I’d been dreading.
The Reality of Tariffs
Tariffs are an added tax on imported goods. Plain and simple. For a small brand with tight margins, these added costs aren’t something we can simply absorb. Unlike large corporations that can offset tariff increases through price hikes passed onto the consumer, or move operations without much consequence, independent brands like Petal + Ash feel the weight of these decisions immediately. It already costs more to responsibly produce goods. Our prices are premium straight out of the gate. Raising them further, as a new brand, is not an option.
This reality is beyond overwhelming to say the least. No one knows what the administration’s end game is, with these tariffs. Most economists and business leaders alike, no matter what side of the aisle, do not see these tariffs as a positive driver for the economy or for consumers. While it’s actually not a bad idea to incentivize re-shoring industries back to the U.S., to penalize importing goods needed here in the U.S. when there is currently no industry, no skilled labor, and no infrastructure here, is not the way to do it. We need a carrot, not a stick.
On a recent call with my business coach, she noted that while entrepreneurship is highly unpredictable under the best of circumstances, this is entrepreneurship on steroids. While I feel some camaraderie in knowing that EVERYONE is dealing with this, to have worked so hard for so long, to build something, and to be so close to birthing it, only to have this huge wrench thrown into the mix is incredibly daunting, to say the least. How are we supposed to produce ‘better’ when the odds are stacked against us?
The Pivot Problem
The most obvious solution would be to shift production to a free trade country. On paper, shifting production to a free trade country seems logical. Lower tariffs and reduced costs sound appealing, but the reality is far more complicated. It also means increased shipping distances, higher carbon emissions, and the potential loss of the localized supply chain I worked so hard to build. While I could attempt to source materials closer to the new manufacturer, many of the most ethical and innovative textiles are concentrated in Europe. Even if I wanted to avoid tariffs, some of our fabrics may still need to come from there — leaving us caught in the middle.
And we’re not the only ones facing this dilemma. With so many brands scrambling to avoid tariffs, competition for factories in free trade zones is skyrocketing, leaving small businesses like mine at a disadvantage.
The Trade-Offs of Free Trade
Then there’s the unsettling truth about free trade agreements. While they eliminate tariffs, they aren’t designed with sustainability in mind. Free trade agreements can create economic opportunities and lower costs for companies, yet they often incentivize complex, global supply chains that contribute to carbon emissions and resource consumption. Many brands use these agreements to bounce materials and products around the globe just to avoid duties. A fabric may be grown in one country, spun in another, cut and sewn elsewhere, and shipped across oceans once again—all in the name of reduced costs. It’s a logistical ping-pong match that’s both wasteful and contradictory to what Petal + Ash stands for.
We’re not willing to compromise our values for the sake of saving a few dollars. But we also need to build viable margins into our business financials, or we won’t have a business able to sustain itself. Part of the whole reasons Petal + Ash came into existence is to bring better lingerie solutions to the marketplace, and if we don’t have a financially viable business, we cannot do this.
Why This Matters
It’s moments like these that shed light on why so many mission-driven brands struggle — and why trailblazers like Mara Hoffman ultimately decided to close their doors. The system simply isn’t set up for responsible brands to thrive. It rewards volume, not thoughtful production. It incentivizes cost-cutting, not responsible choices.
It’s infuriating. Brands like Petal + Ash are doing the hard work of prioritizing natural materials, responsible manufacturing, and transparent supply chains. But the system isn’t designed to support companies making these choices. It rewards the cheapest, fastest production — even if that means materials are shipped around the globe several times before they become a finished product.
But that doesn’t mean we’re giving up. It means we’ll navigate these challenges with transparency and resilience. It means slowing down while we reassess the best way forward. It means continuing to advocate for a system that values people and the planet over profit. And it means sharing this journey with you—because these conversations are part of what will create change.
